Please help!

1.)

Pack, Inc. applies manufacturing overhead on the basis of machine hours. The following estimates were used for the current year:

Estimated Machine Hours 200,000

Estimated Manufacturing Overhead $1,000,000

Actual machine hours were 202,000 and actual manufacturing overhead was $1,005,000. What was Pack's over- or under-applied overhead for the year and what was its effect on cost of goods sold (prior to adjustment)?

Overhead was:	Effect on Cost of Goods Sold (CGS)

Select one:

a.

$10,000 under-applied	Under-stated

b.

$ 5,000 over-applied	Over-stated

c.

$ 5,000 under-applied	Under-stated

d.

$10,000 over-applied	Over-stated

e.

$ 2,000 over-applied	Under-stated

2.)

Operating leverage is an indicator of:

Select one:

a. how sensitive a companys profits are to changes in sales volume.

b. which capital investment yields a higher internal rate of return.

c. a companys break-even point.

d. how much of its profits a company will get to keep after it pays its income taxes.

3.)

If a vice president is evaluated based on residual income and return on investment, which of these mutually exclusive projects should the manager select? The company has a hurdle rate of 10%.

	Project A	Project B	Project C	Project D
Sales	$900,000	$300,000	$1,345,000	$2,000,000
Net operating income	$48,000	$18,000	$82,000	$90,000
Investment	$420,000	$200,000	$300,000	$500,000

Select one:

a. Project A

b. Project B

c. Project C

d. Project D

4.)

Which capital budgeting technique is used on an exclusionary basis to prevent investing time and resources investigating using more complex techniques?

Select one:

a. Net Present Value

b. Residual Income

c. Accounting Rate of Return

d. Payback period